Part 1. COMPTROLLER OF PUBLIC ACCOUNTS
Subchapter L. MOTOR FUEL TAX--PRIOR TO JANUARY 1, 2004
34 TAC §§3.171 - 3.178, 3.180, 3.182 - 3.185, 3.187, 3.189, 3.190, 3.193, 3.195, 3.196, 3.200, 3.202, 3.203
The Comptroller of Public Accounts adopts repeal of Subchapter L, §§3.171 - 3.178, 3.180, 3.182 - 3.185, 3.187, 3.189, 3.190, 3.193, 3.195, 3.196, 3.200, 3.202, and 3.203, without changes to the proposed text as published in the April 4, 2008, issue of the Texas Register (33 TexReg 2805). House Bill 2458, 78th Legislature, 2003, provided for the repeal of Tax Code, Chapter 153, and added Tax Code, Chapter 162, to replace the repealed chapter beginning January 1, 2004.
The sections are being repealed because the four year statute of limitations for filing amendments to tax returns under Chapter 153 has expired. Texas Administrative Code, Title 34, Part 1, Chapter 3, Subchapter S, provide the rules necessary for the administration, collection and enforcement of motor fuel taxes under Chapter 162.
No comments were received regarding adoption of the repeal.
The repeals are adopted under Tax Code, §111.102, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of Tax Code, Title 2.
The repeals implement House Bill 2458, 78th Legislature, 2003.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 15, 2008.
TRD-200802532
Martin Cherry
General Counsel
Comptroller of Public Accounts
Effective date: June 4, 2008
Proposal publication date: April 4, 2008
For further information, please call: (512) 475-0387
Chapter 31. EMPLOYMENT AFTER RETIREMENT
Subchapter D. EMPLOYER PENSION SURCHARGE
The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS) adopts amended §31.41, concerning the return to work employer pension surcharge, without changes to the proposed text as published in the March 7, 2008, issue of the Texas Register (33 TexReg 2007) and will not be republished.
In 2005, the Texas Legislature enacted a penalty or surcharge to be paid by TRS-covered employers who employed retirees. The pension surcharge is an amount equal to the member and state contribution rate on compensation paid to the retiree. Under the 2005 legislation, the pension surcharge was not owed on retirees who were reported by the TRS-covered employer as working in January 2005. TRS adopted rules to clarify that the pension surcharge was only owed on retirees working in TRS-covered positions. In addition to the exemption for retirees reported as working in January 2005, the surcharge was also not owed on retirees working less than one-half time, as substitutes, or in temporary positions. Experience with this amendment resulted in further legislative changes in 2007. Senate Bill 1846 (80th Legislature, Regular Session, 2007) exempts employers from paying the pension surcharge for the employment of retirees who retired before September 1, 2005.
Amended §31.41 reflects these recent legislative changes and preserves the former requirements for historical purposes when TRS must make adjustments or correct errors. The amended section clarifies that the former requirements regarding the payment of a pension surcharge applied to the 2005-2006 and 2006-2007 school years. The amended section further clarifies that, beginning with the 2007-2008 school year, the pension surcharge is not owed on the employment of a retiree who retired before September 1, 2005.
No comments were received regarding the adoption of the amendments.
Statutory Authority: The amended section is adopted under §825.102, Government Code, which authorizes the Board to adopt rules for the administration of the funds of the retirement system.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 19, 2008.
TRD-200802604
Ronnie G. Jung
Executive Director
Teacher Retirement System of Texas
Effective date: June 8, 2008
Proposal publication date: March 7, 2008
For further information, please call: (512) 542-6438
Subchapter A. RETIREE HEALTH CARE BENEFITS (TRS-CARE)
The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS) adopts amended §41.4, concerning the employer health benefit surcharge, with changes to the proposed text as published in the March 7, 2008, issue of the Texas Register (33 TexReg 2009).
Section 41.4 implements the statutory health benefit surcharge owed by a TRS covered employer for each month that the employer reports that a retiree enrolled in TRS-Care is working in a TRS-covered position. In accordance with the initial legislation regarding the surcharge and before the instant rule amendments, the section provided that the surcharge was not owed by a particular employer on retirees enrolled in TRS-Care who were reported working by that employer for the report month of January 2005.
Provisions of Senate Bill 1846, 80th Legislature, Regular Session (2007) (S.B. 1846) expands the scope of exempted retirees. S.B. 1846 provides that, beginning with school year 2007-2008, the health benefit surcharge is not owed with regard to any retiree who retired from TRS before September 1, 2005. The adopted rule amendments address the provisions of S.B. 1846.
The rule amendments provide that previously adopted exceptions to payment of the surcharge apply only to the 2005-2006 and 2006-2007 school years. Contained in subsection (g) of the rule, those exceptions provide that the surcharge is not owed for the following--retirees reported by employers for the report month of January 2005, including those reported by an employer that consolidated with another district on or before September 1, 2005; and retirees reported working as substitutes as long as the substitute service was not combined with other TRS-covered employment in the same month. As amended, subsection (g) thus maintains the status quo under then existing law for school years 2005-2006 and 2006-2007.
Applying to the 2007-2008 school year and thereafter, new subsection (h) of amended §41.4 states that the surcharge is not owed by an employer for any retiree employed by that employer who retired from TRS before September 1, 2005. The adopted amendments also either remove unnecessary language or clarify the section.
In subsection (h)(2) of the amended section, changes are made to the text of the proposed rule as published in the Texas Register. Those changes delete language about reported compensation that relates only to the return to work employer pension surcharge, a different additional sum assessed under 34 TAC §31.41 against employers hiring certain retirees. (Adopted amendments to §31.41 are published elsewhere in this issue.) The changes to §41.4 do not require republication of the proposed rule.
No comments were received regarding the adoption of the amendments.
Statutory Authority: The amended section is adopted under §825.102, Government Code, which authorizes the Board to adopt rules for the administration of the funds of the retirement system; and §1575.052, Insurance Code, which authorizes TRS as trustee for TRS-Care to adopt rules reasonably necessary to implement minimum financing standards for group coverage for TRS-Care participants, procedures for contributions and deductions, and procedures to administer the retired school employees group insurance fund.
§41.4.Employer Health Benefit Surcharge.
(a) When used in this section, the term "employer" has the meaning given in §821.001(7), Government Code.
(b) A retiree who is enrolled in the health benefits program ("TRS-Care") provided pursuant to the Texas Public School Retired Employees Group Benefits Act, is working in a TRS-covered position, and is reported on the Employment of Retired Members Report to the Teacher Retirement System of Texas ("TRS") shall submit the TRS-Care Employer Health Benefit Surcharge Information Form, promulgated by TRS, to the employer, providing details of the retiree's TRS-Care coverage tier, years of service credit, and category of enrollment, as well as the identification of all employers of the retiree and all employers of any other retiree enrolled under the same account identification number, as required by the form. The criteria used to determine if the retiree is working in a TRS-covered position are the same as the criteria for determining employment eligible for TRS membership.
(c) The retiree must submit to the employer an updated Employer Health Benefit Surcharge form when changes occur in coverage or the employment status of any retiree or other individual enrolled under the same account identification number.
(d) For each report month a retiree is enrolled in TRS-Care, is working in a TRS-covered position, and is reported on the Employment of Retired Members Report, the employer that reports the retiree shall, using the information provided by the retiree to the employer on the Employer Health Benefit Surcharge form, pay monthly to the Retired School Employees Group Insurance Fund (the "Fund") a surcharge amount that is derived by taking the difference, if any, between:
(1) the monthly full cost, as set by the trustee, for all individuals (including a spouse and children, if any) enrolled under the same account identification number; and
(2) the monthly total premium, as set by the trustee, for all individuals (including a spouse and children, if any) enrolled under the same account identification number.
(e) The surcharge is also owed by the employer on any retiree who is enrolled in TRS-Care, is working for a third party entity but is serving in a TRS-covered position, and who is considered an employee of that employer under §824.601(d) of the Government Code.
(f) The surcharge under subsection (d) of this section is due from each employer that reports a retiree as working in a TRS-covered position on or after September 1, 2005, beginning with the report month for September 2005.
(g) For the 2005-2006 and 2006-2007 school years, the surcharge under subsection (d) of this section is not owed:
(1) by an employer for any retiree reported by that employer on the Employment of Retired Members Report for the report month of January 2005;
(2) by an employer for any retiree reported by a second employer on the Employment of Retired Members Report for the report month of January 2005, if both employers are school districts that consolidate into a consolidated school district on or before September 1, 2005; or
(3) by an employer for a retiree reported as working under the exception for Substitute Service as provided in §31.13 of this title unless that retiree combines Substitute Service under §31.13 of this title with other TRS-covered employment in the same calendar month. For each calendar month that the retiree combines substitute service and other TRS-covered employment, the surcharge is owed by the employer that reports the retiree on all compensation earned by the retiree, including compensation for the substitute service.
(h) Beginning with the 2007-2008 school year, the surcharge under subsection (d) of this section is not owed:
(1) by an employer for any retiree employed by that employer who retired from TRS before September 1, 2005; or
(2) by an employer for a retiree reported as working under the exception for Substitute Service as provided in §31.13 of this title unless that retiree combines Substitute Service under §31.13 of this title with other TRS-covered employment in the same calendar month. For each calendar month that the retiree combines substitute service and other TRS-covered employment, the surcharge is owed by each employer as provided in this section.
(i) An employer who reports to TRS the employment of a retiree who is enrolled in TRS-Care and is working in a TRS-covered position shall inform TRS as soon as possible in writing of the name, address, and telephone number of any other employer that employs the retiree or any other retiree who is also enrolled under the same account identification number.
(j) If more than one employer reports the employment of a retiree who is enrolled in TRS-Care to TRS during any part of a month, the surcharge under subsection (d) of this section required to be paid into the Fund by each reporting employer for that month is the total amount of the surcharge due that month divided by the number of reporting employers. The pro rata share owed by each employer is not based on the number of hours respectively worked each week by the retiree for each employer, nor is it based on the number of days respectively worked during the month by the retiree for each employer.
(k) If a retiree who is enrolled in TRS-Care is employed concurrently in more than one position that is not eligible for TRS membership, the surcharge is owed if the combined employment is eligible for membership under §25.6 of this title. If the employment is with more than one employer, the surcharge will be paid according to subsection (j) of this section by each employer.
(l) If a retiree who is enrolled in TRS-Care is employed concurrently in more than one position and one of the positions is eligible for TRS membership and one is not, the surcharge is owed on the combined employment. If the employment is with more than one employer, the surcharge will be paid according to subsection (j) of this section by each employer.
(m) If a retiree who is enrolled in TRS-Care is employed in a position eligible for TRS membership, the surcharge will be paid according to subsection (j) of this section by each employer on all subsequent employment, whether eligible for membership or not, with a TRS-covered employer for the same school year.
(n) Notwithstanding subsections (a) - (m) of this section, for the 2005-2006 school year only, a retiree
(1) who retired before September 1, 2005,
(2) who is enrolled in TRS-Care, and
(3) who is employed for a period of more than four and one-half months due to the enrollment of students displaced by Hurricane Katrina may be considered a temporary employee whose employment is not subject to the surcharge under this section.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 19, 2008.
TRD-200802605
Ronnie G. Jung
Executive Director
Teacher Retirement System of Texas
Effective date: June 8, 2008
Proposal publication date: March 7, 2008
For further information, please call: (512) 542-6438
34 TAC §§81.1, 81.3, 81.7, 81.8
The Employees Retirement System of Texas ("ERS") adopts amendments to 34 Texas Administrative Code (TAC) §§81.1, 81.3, 81.7, and 81.8 concerning Insurance without changes to the proposed text as published in the April 4, 2008, issue of the Texas Register (33 TexReg 2806), and will not be republished.
Recent Federal legislation was enacted to prohibit health plans from offering incentives which may encourage members to drop health coverage in favor of TRICARE and TRICARE Supplement plans. These sections are amended to update the rules to delete references to TRICARE or TRICARE Supplement as ERS is not participating in or implementing this program.
Sections 81.1, 81.3, 81.7, and 81.8, concerning Definitions, Administration, Enrollment and Participation, and Waiver of Health Coverage are amended to delete references to TRICARE and TRICARE Supplement.
No comments were received on the proposed amendments.
The amendments are adopted under the Texas Insurance Code, §1551.052 which provides authorization for the ERS Board of Trustees to adopt rules necessary to carry out its statutory duties and responsibilities.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 16, 2008.
TRD-200802543
Paula A. Jones
General Counsel
Employees Retirement System of Texas
Effective date: June 5, 2008
Proposal publication date: April 4, 2008
For further information, please call: (512) 867-7288